Risk Disclosure

Bextree auctions ownership rights to on-chain assets — it does not issue, manage, or guarantee those assets. Bidding, winning, and settling an auction on Bextree carries real financial risk, some of it generic to on-chain assets and some of it specific to how Bextree's settlement model works. This page describes those risks plainly, including the ones that are easy to gloss over. Read it before you bid.

Market risk

The value of the underlying token or position can move between the moment you place a winning bid and the moment the position actually unlocks or settles. A discount to face value at auction time is not a guarantee of profit — face value itself is a snapshot, and the market price of the token at unlock could be lower than it was when you bid, or the token could lose most or all of its value in the interim. You are taking a position on the asset's future price as much as you are buying a discount today.

Seller non-performance risk (Streamflow and other post-custodied assets)

For Streamflow and Jupiter Lock vesting and lock positions, the seller retains control of the asset until after the auction ends — Bextree cannot take custody of it up front, because only the current recipient on the contract is able to transfer it. To offset this, sellers must post a refundable settlement bond (5% of the reserve price) before the auction can go live, and the winning buyer's payment is held in escrow rather than sent directly to the seller.

If the seller fails to complete the transfer within the settlement window, here is exactly what happens: your escrowed payment is refunded to you in full, and the seller's bond is forfeited and split 70% to the platform, 30% to you as compensation. You are made financially whole and receive some additional compensation for the inconvenience — but you do notreceive the asset. If you specifically wanted that position, a failed settlement means you don't get it, full stop, even though you don't lose money on the attempt. This is a real, non-zero possibility for post-custodied listings, and it is the single most important mechanical risk to understand before bidding on one.

No equivalent risk for pre-custodied LP positions

LP positions from Orca, Raydium, and Meteora DAMM v2 NFT Positions work differently and are worth calling out by contrast. These are pre-custodied: the seller deposits the LP NFT into Bextree's on-chain Asset Vault program before the auction ever goes live. Because the asset is already locked in escrow for the entire life of the auction, there is no window during which a seller could choose not to deliver — settlement is a single atomic swap of the already-escrowed LP NFT for your escrowed USDC. The seller non-performance risk described above simply does not apply to this asset type.

Smart contract risk

Bextree's escrow, bond, and vault logic runs as on-chain programs. While these programs are designed and reviewed carefully, all on-chain software carries inherent smart contract risk — bugs, exploits, or unanticipated edge cases are possible in any protocol, including this one. Using Bextree means accepting that risk, the same as using any other on-chain protocol.

Third-party protocol risk

Streamflow, Jupiter Lock, Orca, Raydium, and Meteora (both DAMM v2, used for listable positions, and DLMM, used only for detection) are independent, third-party protocols that Bextree integrates with but does not control. Bugs, downtime, upgrades, or changes to how those protocols behave can affect assets listed on Bextree, and Bextree has no ability to prevent or reverse issues that originate at the protocol level. Verification of a listing or a settlement relies on those protocols' own on-chain state and, in some cases, their indexed APIs — if those are wrong, slow, or unavailable, Bextree's ability to verify or settle a transaction is affected too.

No guarantee of liquidity or resale

Winning an auction does not guarantee you will be able to resell the position later, at any price. Bextree does not maintain a secondary market for positions you've acquired, and there is no assurance that future demand for a given asset will resemble current demand.

Not investment advice

Nothing on Bextree — including displayed discounts, face values, or unlock schedules — constitutes financial, investment, tax, or legal advice. You are solely responsible for evaluating any asset before bidding on it and for understanding the settlement mechanics described above and in our Terms of Service.